Current transaction ratings are available here.

Elevated counterparty risk due to developments with the back-up servicer, Idea Bank SA (Idea), as well as the servicer and originator, Getin Noble Bank (Getin), triggered this review.

Getin’s credit quality has negatively migrated since closing, and the bank experienced liquidity issues towards the end of 2018, but its liquidity has since normalised. Currently, Getin is seeking a recapitalisation, which would further stabilise the bank if successful.

The back-up servicer’s credit quality has also been declining since closing and it is in the process of seeking a recapitalization, leaving the transaction potentially exposed in the event of a servicer failure.

Scope acknowledges that the servicer is proactively addressing counterparty elements that support the transaction. This is based on multiple discussions Scope recently had with Getin representatives.

Scope last reviewed the transaction’s performance on 16 April 2019 and determined that the assigned rating is warranted. Our comment for that review can be found here. Subsequent transaction reports through July 2019 indicate performance remains in line with our expectations from closing. The senior bond amortised 5.4% in the first post-replenishment payment date.

Ratings and research are freely available at www.scoperatings.com.